TXN

Texas Instruments will be the latest semiconductor company to implement price increases. Already business is booming and the management team reported 23% growth in revenue up to 5.5 billion in its most recently completed quarter. Profit margins increased by 300 basis points up to 61% on the gross margin line.

But does all of this make Texas Instruments stock a buying opportunity? Let's take a closer look and answer that question. Looking at Texas Instruments chart of revenue over the previous decade demonstrates very clearly the cyclical nature of the semiconductor industry. Revenue grows, revenue falls, and that cycle repeats itself over many years.

Now we have Texas Instruments, who in a lot of ways is pretty much the complete opposite of Broadcom. Not necessarily from a business perspective, but from a performance perspective. Over the last 5 years or so, the stock is only up about 38%. And you can see from late 2021, really till early 2026, the price performance was extremely choppy. It was very volatile and ultimately went nowhere. And then all of a sudden, the stock price surged from around $150, $160 a share and peaked at $332 a share in the summer of 2026. Now, in the last few months alone, we've seen a little bit of a pullback from those peaks, but the stock is still up 46.8% this year.